Nov. 21 (Bloomberg) -- Emerging-market stocks capped the
biggest decline in three months, led by commodity and technology
companies, after data showed a slowdown in Chinese
manufacturing. Brazil’s real led losses among major currencies.

Stocks fell as a decline in Chinese manufacturing added to
concern that a recovery in the world’s second-largest economy
will falter as leaders start to implement the broadest policy
reforms since the 1990s. Investors also monitored U.S. economic
data for clues on when the Federal Reserve will start tapering
stimulus. A government report showed applications for
unemployment benefits decreased to the lowest level in almost
two months, showing further healing in the labor market.

“When China sniffles, the rest of the emerging markets
gets a cold,” Lawrence Creatura, a Rochester, New York-based
fund manager at Federated Investors Inc., which oversees about
$364 billion, said by phone. “The initial claims fall into the
‘good news is bad news’ category. An improving labor market
could lead the Fed toward a taper sooner rather than later.”

Brazil’s Ibovespa fell to a one-week low as slower growth
in China’s manufacturing spurred concern that expansion will
falter in Brazil’s top trading partner. Usiminas, as the
steelmaker is known, slumped 3.5 percent. The real sank amid
concern Brazil’s budget deficit will lead to a cut in the
nation’s credit rating.

Russian stocks dropped for a second day as OAO Rostelecom,
a state-controlled telecommunications operator, tumbled 4.2
percent on concern a share sale may dilute investors’ stakes.
Benchmark equity gauges in Turkey and Poland retreated. Gedeon
Richter Nyrt., Hungary’s biggest drugmaker, slumped after a U.S.
regulator denied approval to a drug that lies at the heart of
the company’s growth plans.

South Africa

The FTSE/JSE Africa All Shares Index dropped 1 percent, led
by commodity producers. Gold Fields and AngloGold Ashanti Ltd.
sank more than 4.3 percent as the precious metal retreated to
the lowest level since July.

China Vanke and Poly Real Estate Group capped the biggest
declines in two months after Finance Minister Lou Jiwei told the
People’s Daily the government will raise taxes for owning
properties. The yuan closed steady in Shanghai. The People’s
Bank of China said the country doesn’t benefit any more from
increases in its foreign-currency holdings.

India’s S&P BSE Sensex slipped 2 percent as ICICI Bank Ltd.
drove a measure of lenders to the lowest level in a week. Larsen
& Toubro Ltd. decreased the most since Nov. 11, pacing losses
among makers of capital goods. Indonesia’s rupiah dropped 0.4
percent to 11,703 per dollar as of 4:22 p.m. in Jakarta, prices
from local banks show. It reached 11,733 earlier, the weakest
level since March 31, 2009.

The premium investors demand to own emerging-market debt
over U.S. Treasuries rose three basis points, or 0.03 percentage
point, to 328 basis points, according to JPMorgan Chase & Co.